ABSTRACT
Supply chain management is critical to the success of modern business firms. The rise of the Islamic economy and Shari’ah industry has become equally crucial for Shari’ah-compliant business firms. Accounting researchers have explored supply chain relations from two perspectives: first, to show the significance of management accounting in providing information for inter-firm links, and second, to show the emergence of a new form of management accounting in such relations. However, there is a cavity of research to see the relevance of management accounting in the context of Shari’ah-compliant firms. This chapter provides a conceptual understanding of the applicability of management accounting in the context of supply chain networks of Shari’ah-compliant firms, commonly known as halal supply chain. The conceptual framework suggests that management accounting provides information not only to fulfill the conventional need of cost management, performance measurement, etc., but also to ensure the Shari’ah compliance and purity of products or services in the context of the halal supply chain. The study provides insights for policymakers and supply chain professionals. Further empirical studies are required to justify or modify the framework suggested in the chapter.
